New to silver stacking and have a question

Hello all! I'm new to silver stacking and was wondering about something. I don't have a ton of money right now, I'm out of work due to covid (left work in March and have yet to go back since I start school in Jan and I currently live with my parents aka minimal rent) I took a bit out of my savings to buy a bit of silver lately since we have here in the us printed over 20% of all us dollars this year alone. In my situation would you think it would be fine for me to buy a bit of silver for savings/hedge? Also is it ok to ask for recommendations on local coin shops here? Thanks so much!

 

Log in or Sign up to hide this ad.

I think the answer depends on your personal situation and priorities. In general, bullion investment is a speculative sector with high transaction costs, which makes it a risky choice if one's personal finances are not yet stable. If someone had credit card debt not paid off, for example, then attending to that is likely to benefit one much more directly than metals investing.

If you enjoy owning silver and other metals, and get some peace of mind from having an investment category resistant to inflation, than it could have a place alongside a diversified investment mix. Real estate and stocks are both also resistant to inflation and are taxed more favorably than metals in the US.

 

I understand what you mean. I am horrible at spending money. I'm a stress spender which is not good. I figured having a small separate silver savings would benifit me personally since I am also a coin collector it would take care of a separate savings and my need to buy something. I also understand not to buy at to high a price and to have limits. Thank you for the advice!

 

I personally do not recommend silver as an investment platform for novice investors. Best to put your money into a mutual fund in a roth IRA and let it grow. Stocks and silver are all speculative and if we all knew how to game the system, we'd all be rich (we aren't). Having said that, you can use www.coinzip.com to look for local dealers and shows.

 

Not much savings + unemployed + college student + bullion investing = bad formula!

 

Agree with all the above posts.
I have stacked for 40 years
Cashed out big during the great run up in 2009
Got back in big time when silver dropped back 2010-13
Since I’m retired I have time to appraise small collections from local folks.I advertise, Know what you own, as many people have inherited and know nothing about their box of coins. I’m always a buyer at 20% under spot so they don’t have to get scalped at the pawn shop
When something with collectible value shows up, they get a choice of several quality dealers that I refer with my quote as a floor
But don’t get too far into silver, gold or other collectibles that you’re short for cash
PMs have historically been a hedge against politicians
Don’t see any change in that

 

That's what I did as a kid. My local dealer let me go thru the junk silver and build sets. At that time he charged me about 3X face value. I was lucky and never had to cash out. Still own the sets today. My dad was always teaching me to have a savings. He was happy I was doing something to save for those rainy days.

 

Before you ‘stack silver’, I would suggest the following:
- set yourself up to be successful with money, in life
- get on a budget
- have at least 3-6 months of expenses in an EMERGENCY fund
- pay off ALL debt, starting with the smallest balance
- pay with cash, or debit, never credit
- 15% of income goes into a ROTH IRA/401k (in mutual funds)
- check out some Dave Ramsey podcasts or YouTube videos

Since you aren’t working, get a job at a convenience store, or other retail job that takes cash, and you can get the occasional silver coins at face value, with your manager’s or owner’s permission. You can also keep this job while attending school.

P.S. - look in the return tray on Coinstar machines. Finders keepers, lol.

 

Your advice is good. Paying of all debt is 100% my suggestion too. The one thing I'd disagree with is highlighted in red above. Always pay off the highest interest rate (carrying costs) first, not smallest balance.

 

Logically, that might make sense, but if someone is in large debt over various accounts, small victories of paying off debt is encouragement to continue. Most people need, and/or enjoy victories and a sense of accomplishment, as not to get discouraged. If people did what makes sense (analytically), they wouldn’t be in debt in the first place, other than a mortgage.

Either way someone does it. The important thing is that it gets done and never happens again.

 

I do agree with this philosophy also. Psychological victories can be motivators. My advice would be to pick one small balance and pay it off if that's in someone's comfort zone. Then commit to high interest rates going forward. It's a much more fiscally prudent way to eliminate debt.

 

The most fiscally prudent way to eliminate debt is to pay off the highest interest rates first. Every other option is second best....

 

You still have savings? Great! Think in terms of long term. Don't use money that you will need to live on within a year or less. You never want to be in a position of having to sell at a loss. Next if you are investing in silver metal avoid collector coins and their premium prices. Just buy .999 1 oz items. Local dealers are best if their pricing is competitive. Remember not having to pay shipping is a plus. Also figure in sales tax as part of your cost and keep all receipts. Good records are a must should you ever have to deal with the tax man.

 

Agreed. My comment was a concession to the whole psychological motivation

 

The best rule for investing that I know of is simple. Don't invest any more than you can afford to loose.

 

some good advice! i am going back to work in a few months so that isn't to much of a problem. I worked at a gas station/convenience store a few years ago and it was a horrible experience for me so i can say with 100% certainty i will never go back to that kind of job again.

 

I've wanted to metal detect for a long time now! I just never actually doubled down and bought a detector. It gets more and more tempting with every passing year though!

 

Sure changes your perspective on people, doesn’t it? lol